Market News

Association of matatu owners says no to fare cut

kimutai

Matatu Owners Association chairman Simon Kimutai. FILE PHOTO | NMG

Matatu Owners Association (MOA) has opposed calls to reduce fares in Nairobi, saying businesses have already lost up to 30 per cent due to political uncertainty.

Chairman Simon Kimutai said the situation in the past four months had been worsened by last Tuesday’s increase of fuel prices by Sh3, which will further squeeze earnings of operators.

“How do you suggest we lower fares during a crisis like this? Matatus consume an average of 60 litres of fuel daily and this fuel price increase is a major drawback as we are unable to pass over the cost to our clients,” he said.

Last Wednesday, Association of Matatu Operators requested Eastlands bound saccos to reduce fares saying political uncertainty had adversely hurt Nairobi workers and traders.

READ: Why Sonko made U-turn on matatu CBD ban plan

The association, bringing together Eastlands-Nairobi route matatus proposed, the fares be reduced to enable more people living in the area access Nairobi to seek jobs and return home.

Chairman Jimal Ibrahim further suggested easing fares could ease runaway crime levels.

But Mr Kimutai said the matatu sector had suffered immensely, with profits falling by the day as anyone with money is allowed to invest in the sector.

“Even insurance companies have been increasing premiums for our members owing to a higher number of accident claims.